A segment should probably be dropped when the segment has important side effects on other segments cannot cover its own costs. The correct option is B.
<h3>What is a segment margin?</h3>
The profit or loss generated by one component of a business is referred to as segment margin.
Segment margin only considers the segment's revenue and expenses.
By analyzing a company's strengths and weaknesses, segment margin can provide an accurate picture of where it is performing well and where it is not.
If a segment cannot cover its own costs, it should be dropped unless it has significant side effects on other segments.
Thus, the correct option is B.
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Answer:
Errors, fraud, and noncompliance with laws with a direct effect on financial statement amounts.
<h3>
How does the auditor obtain reasonable assurance?</h3>
- In order to obtain reasonable assurance, the auditor shall obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the audit opinion.
- Reasonable assurance is obtained when the auditor has thereby reduced audit risk to an acceptably low level.
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Answer:
$20,000 ordinary gain
Explanation:
Data provided in the question:
Cash proceeds from Selling of the equipment = $50,000
Purchasing cost of the equipment = $60,000
Depreciation expense = $30,000
Now,
The book value of the equipment
= Purchasing cost of the equipment - Depreciation expense
= $60,000 - $30,000
= $30,000
Since,
the amount of proceeds from sales is higher than the book value of the equipment
Therefore a gain will be recognized
The amount of Gain = proceeds from Selling - book value
= $50,000 - $30,000
= $20,000
Hence,
$20,000 ordinary gain
Answer:
$855,000
Explanation:
The Raw Materials T - Account can be used to determine the cost of direct materials used in production using the missing balance technique as follows :
Raw Materials T - Account
Debit :
Beginning Balance $279,000
Purchases $828,000
Total $1,107,000
Credit :
Ending Balance $252,000
Transferred to Production (<em>Balancing figure</em>) $855,000
Total $1,107,000